1. Founding of a Mogami cable manufacturing business

It was started from a small workshop as well as a private home of Tetsu Sato
located in Ohokayama, Meguro-ku, Tokyo, who came from Yamagata-ken.  The first
business was a subcontracting job of a laying process of cables.  The name of
MOGAMI DENSEN (English meaning is MOGAMI CABLE) is associated with the longest
river as flown in only one prefecture in Japan called "Mogami River" that flows
inside of his native land Yamagata-ken. (It is one of three the most
fast-flowing streams in Japan.)

After being faced at financial trouble, he invited business partners Naoichi
Hirabayashi and Shin'e Tanaka with their stock investment to find his solutions
in 1957.  Introduction of new equipment such as braiding machines, serving
machines and extruders led by Naoichi Hirabayashi met the time and returned to
profit in two years later so that it went to plan. However, as the leadership
left from the company founder little by little, antagonistic sentiment was born
between the founder and later two participants, leadership team was split into
two in 1964.  Naoichi Hirabayashi and Shin'e Tanaka took over the majority of
invested equipment and employee and customers, instead they evacuated the
factory that was a private property of Tetsu Sato.

The solution of the question where the factory could be moved was unrealistic
that they built a building in a small field of Naoichi Hirabayashi's native land
in Shiojiri City.  They transported all the equipment to (elder brother of
Naoichi Hirabayashi) Isao Hirabayashi's house, but none of them did not leave
Tokyo including managment staffs of Naoichi Hirabayashi and Shin'e Tanaka. All
of employee hated to move to Shiojiri City, as it was far away country area
taking a whole day to go there from Tokyo.  Farmer Isao Hirabayashi could never
start a factory naturally so that both of two families (Naoichi Hirabayashi and
Shin'e Tanaka) were to be adrift in the streets.

2. Start afresh

Kouichi Hirabayashi, the first son of Naoichi Hirabayashi, was just about to
graduate from university at that state of emergency, so he was asked to work
together to make livings of two families for eight people altogether.  He moved
to Shiojiri City inevitably with his wife Saeko who were halfway through college,
and started organizing wire harness side jobs for telephone for the time being.
They made funds to build a small barrack factory, making livings of two families,
and finally they could run transported machines two years later since they moved
there anyhow.  However, they found out it could not be profitable by
subcontracting business of those wire harness that had been done in Tokyo area,
considering the transportation cost between Tokyo and Shiojiri City.  They were
put back to square one.

He dedicated himself to develop original products to get out of subcontract jobs
thereafter.  He got a hint from the President of Foster Electric Co., Ltd. (today's
Fostex, and the name of president at the time was Shinohara who was acquainted with
Naoichi Hirabayashi because they came from same Nagano Prefecture) that they had
been annoyed by wire breaking accidents of microphone cables they used. And then,
he succeeded to develop an economy long flex life microphone cable.  It was a
hairbreadth job that he could complete his own making prototype machine staying up
all night just before the staff in charge of the project from Foster Electric
visited the factory for inspection.  Thus, he took the first step to get out of
subcontract business anyhow.  Research for bending plastic fatigue of electrical
conductor was one of the leading edge research fields in the mechanical engineering
at that time, which remained as one of the important technical basis of us.

The largest contributor at this age was Tatsuko Fukazawa who retired for her lung
cancer operation later on.  She contributed to take apart over 200 sets of braiding
machines, clean and then reconstruct them that were left out corroded in an earth
floor of Isao Hirabayashi's house for long, and covered wide range of tasks from
machine operation (field work) up to production control thereafter.

3. Rapid economic growth period in Japan 

It indicates how Japanese electric industry could develop rapidly that number of
employee at Mogami factory increased to 50 from only 2 in just two years since the
factory foundation in 1965.  It was realy lucky that Mogami factory started just
before the start of the long lasting prosperity after severe recession in 1964.

In 1970, company name was changed from Chinese letter MOGAMI to Katakana MOGAMI,
some of international inventions by Koichi Hirabayashi were commercially successful
such as "Q-Matching Antena", and then Mogami could pay off all the debt lasted from
Naoichi Hirabayashi dates.  Interconnection cables for home audios, car audios, etc.
were started to be produced as well as headphone cables applying bending plastic
fatigue research as the market developed.

While Naoichi Hirabayashi and Shin'e Tanaka stayed in Tokyo had nothing to do, then
thereafter Naoichi Hirabayashi started plastic molding for connectors, and Shin'e
Tanaka started lead wire cut and lead wire end treatment work establishing a new
company "Mogami Lead Wire Co., Ltd." joint invested by Mogami Wire & Cable Corp.
and Naoichi Hirabayashi.  Plastic molding business expanded going with the tide of
the times and it became one of mainstays for Mogami until the VTR age.  And
thereafter, overseas transfer of Japanesse electric industry was advanced, so the
size of plastic mold business was greatly scale-downed.  However, still this
facility has been inherited to "Creatoise Co., Ltd." (company established by Yuji
Hirabayashi sometime after) and subcontractors of Mogami. Mogami Lead Wire Co., Ltd.
was dissolved in 1993, although this company kept almost no dividend all the time,
it had been run in sound condition.

Koichi Hirabayashi started to learn computer technology at this age to enhance
production management like inventory control.  From the very early days small
business computer with only 15 word memories, and office computers liks USAC and
FACOM, and through unique personal computer GP-IB applied "PET" and then UNIX Mini
computer like Toshiba UX-300/UX-700, he kept studying software. That flow resulted
in today's UNIX based systematization, automation, original CAD system and product
control and management system. His original design GP-IB one board computer run
steadily until 2006, which was developed to make it possible just by several
hundred thousand Japanese Yen investment instead of buying several million Japanese
Yen desk top computer at that time.  That endeavour became the basis for various
kinds of automated system today.

Also, UL recognition (Underwriters' Laboratories: American safety standard) was
started to be required for all Japanese manufacturers at this age.   This
recognition was undertaken by Yuji Hirabayashi (second son of Naoichi Hirabayashi)
and Koichi Hirabayashi at the beginning, and some strategic new styles were
projected and actually obtained.  CSA (Canadian safety standard) recognition was
also obtained at the same time, but CSA recognition was abandoned afterall because
of low demand so that it did not pay.

4. VTR age

There was an experience at the Ohokayama age that when Naoichi Hirabayashi came to
a deadlock at difficult cable lay process working under a subcontract, it was solved
by Koichi Hirabayashi applied differential geometry which was not known popularlly
then, Mogami could receive relatively hard type cable lay process jobs thereafter.
One of it was video camera cables for JVC laboratory, who was developing VTR for
consumer market when there was a small market only for business use.

When they established VTR Division as the consumer VTR market expanded, Mogami was
appointed as their main supplier for cables, anticipating our technology capability.
We think it was a plucky decision for them, as they selected such a short history
company among many established cable companies then.

We had been kept with production increase thereafter, as we supplied both of
interconnection cables and internal wiring cables for their VTR and the development
speed of VTR market was rapid.  Our turnover expanded steeply, while plastic mold
technology was succeeded to Yuji Hirabayashi and VTR became the top market for it.

The largest contributor at this age were Yasuhiro Nakano, key person at quality
control, and Tokio Kobayashi, who made great efforts for production and subcontrator
control.  Especially, Yasuhiro Nakano built up the basis of quality assurance system
for Mogami thereafter.

While in this period, some operations were splited to bring up next generation
executives, MIT (the third son of Naoichi Hirabayashi), CREATOISE (the second son of
Naoichi Hirabayashi), and GOMI WORKS led by Kenji Gomi remained today, and GOMI WORKS
became the core of the bulk cable production.  GOMI WORKS started production at 
owner's home premises, developed satisfactorily and moved to Alps Industrial Park 
thereafter.  However, the time when they moved there overlapped the time when
overseas transfer of Japanesse electric industry was advanced so that they were faced
at sales decline, and moved into inside of Mogami Wire & Cable Corp. factory plant,
withdrawing from Alps Industrial Park.

5. Audio cable

Mogami name became to be known widely in audio field other than electric manufactures,
especially in hi-fi market, in 1977 by unexpected reasons.  It was that world
astonished issue that "sound is changed by a cable transmitted through".  This fact
was noticed by Akehiko Kaneda of Akita University and hi-fi audio critic Saburo Egawa
independently at almost same time, and reported in hi-fi magazines.  Those magazine
articles are the very origin of this issue.

Although all of audio manufacturers in Japan like Sony, JVC, Trio etc. carried out
taking up the stance for development of piggybacking products setting aside
theoretical research, because it looked so absurd assertion for Koichi Hirabayashi
at that time that they (Kaneda and Egawa) insisted the transmitted sound is changed
by skin effect of the used electrical cables, he started research himself for the
purpose of denying it.  However, as he thought about it deeply, he got the feeling
that their assertion might be correct experimentally as well as theoretically so that
he had to research it seriously.

This led him a very interesting discovery as well as academically, and brought up
technical development was very high for Mogami, but hi-fi audio cable market was
corrupted by commercialism almost same as deception and misunderstanding spread out
large, Mogami's hi-fi specialized products became limited supply only for small part
of audio enthusiasts today.  But, this research became one of the fighting strengths
in the proaudio market for us thereafter.

6. Transit into international proaudio market

Thus, business condition of Mogami expanded smoothly up to the peak of the VTR market
in 1987. And then we were faced at a critical turning point when the VTR market turned
to scale down conincident with overseas transfer of Japanesse electric industry so that
we had to develop a new market.  The largest contributor at this stage was Ryuzo
Hirabayashi (third son of Naoichi Hirabayashi) with his company "MIT INC." (stands for
Mogami International Trading) who had committed to export for long, he found a way out
today's proaudio market.

There are lots of colleague who shared one difficulty after another since Shiojiri
factory was founded including those who passed away already.  Contribution by those
two member is outstanding among them, who are Yasuhiro Nakano, an executive exerting
himself in the post of quality control today, and Kenji Gomi, leading majority of
today's production site.

7. Reconstruction of Shiojiri Factory/Plant

Factory building in Shiojiri City that had been extended by used timber since 1967
became too old for work so that the risk of collapse by fallen snow in winter
increased.  Therefore, overall reconstruction of the factory/plant was started to
be considered.  Since it had to be a reconstruction while keeping operation in the
same site, there were many difficult obstacles in both of design and constructing.
They were settled by the endeavour of Kitano Construction Ltd. to considerablly
easy to use form and all the manufacturing process was moved to a new building in
November, 2002, one year after the start of the construction.

We carried out designing computer control of the manufacturing facilities and plant
accessories in parallel with building design by this opportunity for advancing
thorough automation and saving energy that had been thought over by Koichi Hirabayashi
for long until then.  All of design, production, installation and software were made
in-house based on Unix OS so that it could be done in extremely low cost overall.
The idea that everything is set in LAN is a quite advanced technology even today.

Because our factory was divided up to eight buildings before reconstruction, 
transportation of materials and goods in process was hard so that we had hard time
in controling them.  Everything became much easier in today's new building since
all of manufacturing process can be set in one flat floor.  Especially, it is a great
harvest for us that the speed of finding out production troubles and their solution
became extremely fast.  Toyoda style MONOZUKURI KAIZEN (constant change for the better
of creative design and manufacturing) has been greatly advanced, making use of one
floor condition.

Real estate tax was increased by JPY 2.6 million per year and insurance was decreased
by JPY 0.356 million per year compared to the old building time.